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With McDonald’s and Chipotle’s fortunes literally diverging (and their earnings announcements occurring within hours of each other last week) cue the quarterly cries that McDonald’s mistakenly divested the burrito dynamo.
McDonald's sale of Chipotle might be one of the worst business decisions ever made http://t.co/OXhd7wWsWQ
World crude prices have stopped falling precipitously - for now. Plenty seem to be betting that prices can rise quickly from $85 a barrel, if a 'floor' is not far below. Lex isn't so sure - and in this live note will look at the winners and losers of a longer oil slump. Join us at 12pm London for the discussion.
Lex discussed on Wednesday the upcoming 600Mhz spectrum auction the FCC will launch in 2015. Not only is the estimated dollar value of the spectrum proceeds massive ($45bn vs. the $19bn for the 700Mhz auction in 2008) but many observers believe it is the most complex auction ever envisioned.
The US government doesn’t happen to own the spectrum being sold- it is the possession of local TV stations across the United States. It’s formally being referred to as an “incentive” auction because the FCC has to cajole thus far reluctant TV stations to put their spectrum holdings up for sale. And so the incentive auction is two auctions run in parallel. On one side is a “reverse” auction that determines the price at which spectrum is tendered. On the other side is a “forward” auction where buyers such as mobile operators Verizon and T-Mobile bid for spectrum.
This probably isn’t the week to be announcing transformative M&A — as infrastructure software provider NetScout has discovered the hard way. It announced a rare Reverse Morris Trust transaction on Monday where it would combine with the communications unit of the conglomerate Danaher, a key rival. In an RMT deal, one company will spin off a division and simultaneously merge it with a smaller company. The rub is that it remains tax-free to both companies and shareholders as long as the shareholders of the spinning conglomerate own a majority of the new company’s shares.
Here’s how NetScout shares have reacted since Monday.